Colgate-Palmolive (CL) AI Stock Analysis

• Market Cap: $74.51B
• Dividend Yield: 2.22%
• Average Volume (3M): 4.61M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.14
• Revenue Growth: 0.98%
• EPS Growth: 12.12%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Household & Personal Products
• EPS (TTM): 0.91
• Shares Outstanding: 810,420,100
• 10 Day Avg. Volume: 4,999,015
• 30 Day Avg. Volume: 4,605,121
• PEG Ratio: 44.62
• Price to Book (P/B): 202.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.99
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $101.15
• Price Target Upside: 10.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: $99.00 ▲(7.68%Upside)

Colgate-Palmolive's overall score reflects strong profitability and cash management, offset by high leverage and recent revenue declines. While technical indicators are mixed, strategic leadership changes and investment in innovation present growth opportunities. However, valuation concerns and external challenges like tariffs and market softness warrant caution.

Positive Factors

Earnings

Better than expected Q1 EPS reinforces CL is better positioned than peers, with FX flex/defensive mix/recent reinvestment/solid pricing power vs HPC peers, driving better EPS visibility.

Growth

CL's Hill’s Pet Nutrition remains a key growth driver for the company going forward.

International Expansion

Incremental opportunity is seen in international markets like China and Brazil.

Negative Factors

Competition

Downside risks include intensified competition leading to market share losses, higher promotional activity, volatility in input costs, foreign exchange fluctuations, and weak macroeconomic conditions.

Macroeconomic Conditions

Broader macro uncertainty has taken a toll on consumer sentiment, leading to a more prudent approach to wallet management.

Tariffs

Tariffs are weighing on margins to the tune of $200mil in FY25.

Colgate-Palmolive Business Overview & Revenue Model

Company Description

Colgate-Palmolive Company is a global consumer products corporation headquartered in New York City, specializing in the production, distribution, and provision of household, health care, and personal care products. The company operates in two main sectors: Oral, Personal and Home Care, and Pet Nutrition. Its core products include toothpaste, toothbrushes, soaps, shampoos, deodorants, dishwashing liquids, and pet food under brands like Colgate, Palmolive, Speed Stick, Ajax, and Hill's Science Diet.

How the Company Makes Money

Colgate-Palmolive generates revenue primarily through the sale of its consumer products across the Oral, Personal and Home Care, and Pet Nutrition segments. The Oral, Personal and Home Care segment accounts for the majority of its revenue, driven by high-volume sales of toothpaste, toothbrushes, and other personal care products worldwide. The Pet Nutrition segment, led by the Hill's Pet Nutrition brand, contributes significantly to the company's earnings through sales of specialized pet food products. The company benefits from a broad global distribution network, established brand presence, and strategic partnerships with retailers and distributors to enhance market penetration. Additionally, Colgate-Palmolive invests in marketing and innovation to maintain competitive advantage and drive consumer demand.

Colgate-Palmolive Financial Statement Overview

Summary

Colgate-Palmolive demonstrates strong profitability with robust margins and efficient cash flow management as evidenced by strong cash flow ratios and a high net profit margin. However, the company faces concerns with high leverage indicated by a high debt-to-equity ratio and low equity base, coupled with a slight decline in recent revenue growth.

Income Statement

Colgate-Palmolive shows a stable financial performance with consistent revenue growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin is robust at around 60.73%, and the net profit margin stands at 14.52%, both indicating strong profitability. The EBIT and EBITDA margins are healthy at 21.87% and 23.72%, respectively. However, the revenue growth rate from 2024 to TTM is slightly negative at -0.77%, which is a point of concern despite the overall stable performance.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 18.10 in the TTM period, indicating significant leverage. The return on equity (ROE) is strong at 798.35%, but this is primarily due to the low equity base, which poses a risk. The equity ratio is low at 2.18%, suggesting a reliance on debt financing and potential financial instability in adverse conditions.

Cash Flow

Cash flow analysis shows strong performance, with a free cash flow growth rate of -2.23% from 2024 to TTM, suggesting a slight decline but still maintaining substantial free cash flow. The operating cash flow to net income ratio is 1.39, and the free cash flow to net income ratio is 1.20, both indicating efficient cash generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.95B	20.10B	19.46B	17.97B	17.42B	16.47B
	Gross Profit
12.11B	12.16B	11.33B	10.25B	10.38B	10.02B
	EBIT
4.36B	4.27B	3.98B	4.33B	4.47B	3.88B
	EBITDA
4.82B	4.27B	4.25B	4.13B	4.37B	4.33B
	Net Income Common Stockholders
2.90B	2.89B	2.30B	1.78B	2.17B	2.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.11B	1.10B	1.15B	775.00M	832.00M	888.00M
	Total Assets
16.65B	16.05B	16.39B	15.73B	15.04B	15.92B
	Total Debt
8.27B	8.51B	9.06B	8.90B	7.25B	7.60B
	Net Debt
7.16B	7.42B	8.10B	8.12B	6.41B	6.71B
	Total Liabilities
15.91B	15.50B	15.44B	14.93B	14.07B	14.82B
	Stockholders Equity
363.00M	212.00M	609.00M	401.00M	609.00M	743.00M
Cash Flow		Free Cash Flow
3.47B	3.55B	3.04B	1.86B	2.76B	3.31B
	Operating Cash Flow
4.03B	4.11B	3.75B	2.56B	3.33B	3.72B
	Investing Cash Flow
-500.00M	-534.00M	-742.00M	-1.60B	-592.00M	-779.00M
	Financing Cash Flow
-3.49B	-3.39B	-2.79B	-952.00M	-2.77B	-2.92B

Colgate-Palmolive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Positive. The current price of 91.94 is above the 20-day moving average (MA) of 91.03, above the 50-day MA of 91.70, and below the 200-day MA of 93.29, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.

Colgate-Palmolive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$384.55B	26.05	30.29%	2.51%	-0.16%	2.74%
CHD	74 Outperform	$24.47B	42.63	13.35%	1.17%	2.18%	-26.08%
KMB	68 Neutral	$44.31B	18.20	229.84%	3.71%	-3.12%	34.80%
KVUE	68 Neutral	$41.72B	39.62	10.22%	3.85%	-1.18%	-29.18%
CL	66 Neutral	$74.51B	26.03	977.07%	2.22%	0.98%	12.12%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
CLX	62 Neutral	$15.74B	22.93	1176.27%	3.83%	-2.64%	189.29%

Colgate-Palmolive Corporate Events

Colgate-Palmolive Appoints Shane Grant as COO

On May 29, 2025, Colgate-Palmolive announced the appointment of Shane Grant as Chief Operating Officer for the Americas, effective June 16, 2025. Grant, who previously held leadership roles at Danone and The Coca-Cola Company, will receive a comprehensive compensation package including a base salary, bonuses, and equity awards. The company also announced the retirement of Prabha Parameswaran and subsequent leadership changes, positioning itself for strategic growth and development.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.

Colgate-Palmolive Holds Annual Stockholders Meeting

On May 9, 2025, Colgate-Palmolive held its Annual Meeting of Stockholders where several key decisions were made. The election of ten directors was confirmed, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025. A non-binding advisory vote on executive compensation was approved, while stockholder proposals for an independent Board Chairman and revisiting plastic packaging policies were not approved.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.